In this episode of Coin Stories, Natalie Brunell interviews James Lavish about Bitcoin's value proposition in traditional finance. Lavish argues that a 0% allocation to Bitcoin is the wrong approach and discusses how institutions are beginning to recognize Bitcoin as a legitimate global macro asset, similar to gold. He explains the Sharpe ratio and how adding even a small percentage of Bitcoin to a traditional 60-40 portfolio can enhance returns and improve risk-adjusted performance. Lavish dismisses the idea of price suppression, attributing Bitcoin's volatility to early adopters cashing out and institutions capitalizing on market fluctuations. He addresses concerns about Bitcoin's lack of cash flow by highlighting its utility in providing transparency and eliminating counterparty risk, while also touching on the potential for stablecoin regulation to support US Treasuries and the challenges of growing out of the national debt.
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